The Reserve Bank of Zimbabwe (RBZ) has set aside US$10 million to support income generating projects for youth as the government moves to address gaps that have seen young people accessing only 3.65% of banking sector loans in the country.
Speaking at the CBZ Youth Entrepreneurs (YEP) Program Awards held in the capital on Thursday, RBZ Bank Supervision Division Deputy Director, Audrey Hove said over the past years, access to finance by the youth has been very low accounting for only 3.65% of the banking sector loans.
“Over the past years, access to finance by the youth has been very low accounting for only 3.65% of the banking sector loans of $3.80 billion as at 31 December 2017.
“The youth are excluded from formal financial services due to various factors including inadequate information on financial services and lack of acceptable collateral security.
“In this regard, the Reserve Bank of Zimbabwe has established a number of empowerment facilities amounting to $381.51 million to benefit various priority groups that are financially excluded.
“While the youth qualify to access funding across the facilities, $10 million has been specifically been set aside to support businesses and income generating projects by the youth,” she said.
Hove added that the facilities are not concessional interest rates and the facilities are available through banks and microfinance institutions.
“The facilities are not concessional interest rates and the facilities are available through banks and microfinance institutions.
“Further, a Youth Thematic Working Group was constituted to promote development of innovative financial products and facilitate capacity building programs for youth,” she said.
